New home construction and FS 720.3035

Individuals that work for a builder have purchased custom lots in our custom luxury home development; however, the homes being built are by a high volume spec home builder not a custom home builder. Appraisal shows that the homes they are building are of lesser value than the houses already in existence. As a result, the homes being built could lower the value of our homes in an already struggling real estate market and economy.

Our Declaration of Covenants and Design Guidelines state under Design compatibility, workmanship and materials that the homes must be constructed of equal or better quality than the existing homes in our community. The mission statement states that the Guidelines have been put in place to protect the home values of our community.

We, as a community, do not have a problem with any builder building homes in our neighborhood, as long as the value of the homes built hold the same or greater value as the homes already existing in our community.

The HOA’s position is that the Declarations are not specific enough for the Association to deny the builder application pursuant to Florida State 720.3035. Homeowners in our community feel that the Declarations are in fact specific enough by stating “equal or better quality” and “to protect the value of our homes”.

Any comments are welcome. Is there any case law surrounding new home construction in favor of the community and/or HOA that protects our home values? Are the Declaration of Covenants specific enough by stating “equal or better quality” and protect the value of the homes in our community?

Along those same lines with John...A HOA does NOT keep home values up. A HOA keeps the ATTRACTIVENESS to buyers to purchase in your HOA. Your home values are not based on construction materials but on the value of other homes with similar features such as number of bedrooms/baths. A foreclosure in your neighborhood nearby can bring down the value of your homes more so than lesser constructed homes in your opinion.

Yes, the homes should match up with the existing homes on appearance. They should have the same theme or color scheme matching. I would go so far as they must be made of a brick veneer, vinyl siding, stucco, or other such outside materials to keep with matching. However, I wouldn't go so far as to limit construction material value.

I say as long as a house is sold that is another member to pay the HOA dues...

Thank you for your comments. I will let you know how this turns out.